One of the most effective ways to reduce the value of your estate and therefore reducing your estate taxes is to gift assets to other individuals. There are many ways to gift assets to people or organizations but the government does place restrictions on the amount one person can gift each year. Currently (2021) an individual can gift up to $15,000 of property or cash yearly without paying any gift tax on it (IRS - FAQ on Gifting). These gifts are especially helpful to those who are thinking about participating in certain trusts as it will reduce the taxes of both the grantor and beneficiary. If you or a loved one wishes to gift money or assets to reduce estate value or taxes then they must contact a Fremont estate planning attorney immediately.
There are many different ways that individuals can gift assets over to another including:
· Paying for another's medical expenses
· Gifting over cash to an individual
· Paying for an individual's schooling costs
· Gifting assets to your spouse
All of these ways qualify as legal gifting strategies and effectively reduce the value of your estate. Certain gifts allow individuals to give more than the maximum of $15,000. Any medical or school payments that are made directly to the hospital or institution are also part of careful estate planning, and can reduce the value of the estate, and thus the potential estate taxes . Our legal team is very knowledgeable of California estate and tax law and can help determine any future complications you may encounter with your gifts. The laws change year-to-year, and we ensure that we advise clients of changes and the potential for other savings as these laws and requirements are updated.
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We can help you follow the correct gifting protocol so your gifts are part of your estate value deduction. When you are planning to gift over large amounts of assets it is always important to retain legal representation.
The Singh Law Firm can review your gifting options to determine an appropriate gift amount for you or a loved one. We will walk you through the necessary steps and help you effectively manage your estate so no future complications arise , and your loved ones have all the possible benefits under current state and federal law.